Do you add markups to vendor bills, so the management company gets a percentage? This article will show you how to enable markups in your Rentvine account and add a markup when creating a bill.
A markup is a service fee that property management companies add to bills that are paid on behalf of an Owner.
If markups are already enabled in your Rentvine account you can skip the below steps
Enabling Markups in Your Account
- Navigate to your global settings
- Under the Accounting section, click on Accounting Settings
- Navigate to the Billing section
- Edit the "Vendor Markups Enabled" and set to "Yes"
- Now add the "Vendor Markup Expense Account". This is to let the system know what chart of account to use when the markup bill is automatically created.
If you do not have a Vendor Markup Expense chart of account please get one created. To get this created view the article attached. How to Enter a New Chart of Accounts
- Now that your markup settings are configured in your Rentvine account, you can now get a markup added to a bill. Please note that if the steps above are not configured the system will not let you markup a bill.
Adding a Markup to A Bill
- First you want to navigate to the "Add bill" section in the system. If you have questions on how to add a bill, please see the article on how to get a bill added in the system. How to Add, Edit and Delete a Bill
- Select the vendor in the payee section to show who is getting paid out for this bill.
- Once the payee is selected a "Markup %" section will show up in the bill detail
- Once you enter the details of the bill and the markup percentage is entered, the system will show you the breakdown of the bill with the markup.
- Once you click save, the system will create the original bill that is going to the vendor and create a markup bill that will be paid to the property management company. These bills will be linked together and you can view the markup bill or the original bill from each page by clicking the link.
If you ever need to void a bill and a mark up bill you can click the green actions button and void one of the bills. This will give you the option to "Voiding Linked Bills". When this is toggled on it will automatically void the original bill and the markup bill.
Showing/Combining the Markup for Owners
If you DO NOT want the owner to see the markup bill on their owner statement you can go to your owner statement settings and get this configured.
- Navigate to your global settings.
- Under Accounting, click Statements.
- Click on the owner statement profile you want to show/not show the markup bill on.
- Make sure "Combine Markup" is set to "Yes" if you DO NOT want the owner to see it on their statement. It will combine the total of the original paid bill and the mark up paid bill together on the statement.
- Below is an example of how the mark up will reflect on the owner statement when the "Combine Markup" toggle is set to "Yes".
Please note that if you would like the markup to be combined when the owner views it you will need to ensure both the original bill and the mark up bill have the same payment date. The payment date is how the system knows to combine both bills together.
- Now if "Combined Markup" is set to "No" it will separate the two paid bills on the owner statement. This will show the owner the bill to the vendor and the markup bill paid.
- Another section you can combine the markup is on the owner portal. For this you will need to navigate to the owner portal settings.
- Here you will see the option for "Combine Markup". With this toggled on it will combine the markup on the owner's live ledger (if enabled) and under their bills section (if enabled).
